Gold erases losses and climbs back above $1280

US Dollar losses momentum and favors a rebound in gold.
XAU/USD remains in ranges, near weekly lows but again above $1280.

Matías Salord FXStreet

Gold reversed its intraday trend following the European Central Bank meeting and Draghi’s press conference. It was moving with a bearish and bottomed at $1276 (January low) and then bounced to the upside rising back above $1280.

Is of writing trades $1282.30/oz, with a bullish tone but still in the range that has been in place since the beginning of the week, between $1276 and $1286.

Economic data from the US failed to boost the US dollar and lower US yields supported the move to the upside in gold. The 10-year bond yield fell to 2.71%, the lowest January 17. In Wall Street, the Dow Jones is flat, and the Nasdaq gains 0.45%.

Technical levels to watch

To the downside, a break below $1276 could trigger a test of the $1270 barrier. While to the upside, the key resistance is seen around the $1285 region, above gold bullish tone will likely intensify targeting $1290. On a wider perspective, a daily close significantly above $1295 is needed to clear the way to more gains.

XAU/USD

Overview:
    Today Last Price: 1282.76
    Today Daily change: -0.36 pips
    Today Daily change %: -0.03%
    Today Daily Open: 1283.12
Trends:
    Daily SMA20: 1285.78
    Daily SMA50: 1256.99
    Daily SMA100: 1235.46
    Daily SMA200: 1228.62
Levels:
    Previous Daily High: 1286.52
    Previous Daily Low: 1278.7
    Previous Weekly High: 1295.9
    Previous Weekly Low: 1276.2
    Previous Monthly High: 1284.7
    Previous Monthly Low: 1221.39
    Daily Fibonacci 38.2%: 1281.69
    Daily Fibonacci 61.8%: 1283.53
    Daily Pivot Point S1: 1279.04
    Daily Pivot Point S2: 1274.96
    Daily Pivot Point S3: 1271.22
    Daily Pivot Point R1: 1286.86
    Daily Pivot Point R2: 1290.6
    Daily Pivot Point R3: 1294.68

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.